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Economics MCQ AS MICRO

I just did a Tutor2U quiz on 'Income and Cross Price Elasticity'.

A question was as follows:

A 20% rise in incomes brings a 25% in the bookings at hotels in Blackpool. This means:

- Hotels in Blackpool are inferior goods
- Hotels in Blackpool are a normal good
- Hotels in Blackpool have income elastic demand
- Hotels in Blackpool are a luxury product.

Surely the answer is part d.) as the income price elasticity of demand (responsiveness of the quantity demanded of the good or service following a change in real income) is >1?
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Just quoting in Puddles the Monkey so she can move the thread if needed :h:

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Original post by Bigbosshead
I just did a Tutor2U quiz on 'Income and Cross Price Elasticity'.

A question was as follows:

A 20% rise in incomes brings a 25% in the bookings at hotels in Blackpool. This means:

- Hotels in Blackpool are inferior goods
- Hotels in Blackpool are a normal good
- Hotels in Blackpool have income elastic demand
- Hotels in Blackpool are a luxury product.

Surely the answer is part d.) as the income price elasticity of demand (responsiveness of the quantity demanded of the good or service following a change in real income) is >1?


is the answer c? if so. then the income has affected the person's choice

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